Laxmi India Finance IPO-How to Apply, Check, Why it Popular

Laxmi India IPO

Have you ever wondered how a company raises money so it can grow bigger and help more people? That is what an IPO is all about! Today, let’s talk about the Laxmi India IPO. We will explain what an IPO is, why Laxmi India is an interesting company, and what happened in their big stock market launch.

What is an IPO?

Before we talk about Laxmi India IPO, let us quickly explain what an IPO is.

IPO stands for Initial Public Offering. When a company wants to grow, it needs money. It gets this money by selling shares (tiny parts of the company) to the public for the first time.

After an IPO, regular people (like you and your parents) can buy these shares on the stock market.

What is Laxmi India Finance?

Laxmi India IPO Finance ltd is a company from Jaipur, Rajasthan. It is called an NBFC (Non-Banking Financial Company). This is not a normal bank, but it provides loans and financial services, especially to people in smaller cities and villages.

Laxmi India Finance gives:

• MSME loans (loans for small and medium businesses)
• Vehicle loans (for buying vehicles)
• Construction loans

Their main goal is to help those who do not have easy access to big banks. By March 2025, they had 158 branches across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh. The company managed loans worth ₹1,277.02 crore and had more than 35,000 active customers, including business owners and vehicle buyers.

Why Did Laxmi India IPO Do?

Laxmi India wanted to grow even bigger and help more people. Here is why they launched their IPO:

• They needed more money to give out more loans to businesses and families.
• By becoming part of the stock market, they improved their reputation. Now, more people recognize them.
• It also allows previous owners to sell some of their shares and new people to become part-owners.

Laxmi India IPO: Quick Facts

Let’s break down all the important numbers and dates in an easy-to-read way:

How Was Laxmi India IPO Received?

The Laxmi India IPO got a lot of attention and was oversubscribed.

• Overall Subscription Rate: 1.85 times, which means investors wanted to buy almost twice as many shares as were available!
• Retail Investors: They were the most excited. Their part of the Laxmi India IPO was subscribed 2.2 times!
• Big Investors: Like mutual funds, insurance companies, and banks, their part was subscribed 1.3 times.
• Non-Institutional Investors (like rich individuals) had a 1.83 times subscription.
• The company set the price range at ₹150-₹158 per share. The shares even got a grey market premium (GMP) of around ₹4-₹9, suggesting some excitement in the market.

How Will Laxmi India Use the Money?

• Expand their loan business: They want to give more loans to small businesses and regular people.
• Open more branches: To reach more areas in India.
• General business expenses: Making their company run better and stronger.

Key Strengths of Laxmi India IPO

• Wide presence in semi-urban and rural areas: This helps people in smaller towns, who often struggle to get loans from big banks.
• Diverse loan types: They help lots of different people and businesses.
• Experienced team: They have been running for more than 25 years and know how to manage risks.
• Big supporter of government plans: Many of their loans are part of government schemes to help grow small businesses.

Financial Health of Laxmi India IPO Finance

In the past years, Laxmi India Finance has grown:

• Revenue grew by 42% to ₹248 crore in FY25.
• Profit after tax jumped 60% to ₹36 crore in FY25.
• Most loans go to small businesses (MSME loans make up about 76% of loans)
• They have over 35,500 active borrowers, many of whom are first-time loan customers.

Are There Any Risks?

Nothing is perfect! Here’s what potential investors should think about:

• Most businesses in a few states: If something bad happens in these states, the company could be hurt.
• Dependence on small business loans and vehicles: If the economy has trouble, people may find it hard to repay these loans.
• Competition: Many other companies and banks also give out loans.
• Changes in rules: The RBI (Reserve Bank of India) can make new rules, which could make life harder for NBFCs.

How to Apply for the Laxmi India Finance IPO

1. Open a demat and trading account 
2. Log in to your broker’s app or website
3. Go to the IPO section
4. Select Laxmi India IPO
5. Pick the number of lots (minimum is one lot = 94 shares)
6. Enter your UPI ID for payment, or use ASBA if you want to apply via your bank
7. Approve the payment request you receive on your UPI app
8. Wait for the allotment date.

You can check your allotment status on the registrar’s website after August 1, 2025

Laxmi India IPO: Step-By-Step Timeline

How Can You Check Your Laxmi India IPO Allotment Status?

If you applied for the Laxmi India IPO, here is how to find out if you got shares:

1. Go to the BSE or NSE website.
2. Enter details like your PAN (Permanent Account Number) and application number.
3. The site will show if you have any shares!

Why Was Laxmi India IPO Finance’s So Popular?

There are several reasons why this IPO became a hot topic:

• LIFC has a strong presence in North and Central India and helps many small businesses that are the backbone of the Indian economy.
• Growth in loan book: LIFC grew its AUM (Assets Under Management) to over ₹1,000 crore, showing the business is growing fast.
• Focus on financial inclusion: By giving loans to people who can’t get them from normal banks, LIFC helps economic growth in less-served areas.

Also, the price band was thought to be attractive for new investors because LIFC had made consistent profits in the past, so some investors believed it was a good value for money.

Should You Invest in the Laxmi India IPO? Pros and Cons

Pros

• Strong in rural and semi-urban markets: Laxmi India is good at reaching people and businesses that big banks often miss.
• Steady growth: Both income and profits have gone up year after year.
• Experienced management: The team has long experience in finance.
• Scalable model: Easy to open more branches and get more customers.

Cons

• Credit risk: Lending to people in less developed areas can be risky.
• High borrowing: The company borrows money to lend money, leading to high debts.
• Competition: Many other NBFCs are present, and big banks might also target these customers.

Conclusion

The Laxmi India IPO shows how even companies that serve small towns and rural places can become part of the big stock markets. The company is growing fast, making profits, and has many customers who need its services. But it is not without risks – lending to smaller businesses can sometimes lead to unpaid loans, and competition is always there.

If you are thinking about investing in stock markets or Laxmi India IPO, always do your research, read the company’s documents, and maybe talk to someone who knows markets well.